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Question
Current Account Saving Account
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Solution
Current Account Saving Account
|
Sr. No. |
Basis of Difference |
Current Account |
Saving Account |
|
1.
|
Meaning |
It is that account which is maintained by businessman and others who have regular transaction. |
It is that account which is opened by individuals in order to save a part of their income. |
|
2. |
Withdrawals |
Customers can withdraw money by cheques. |
Customers can withdraw either by cheques or by withdrawals slip along with passbook. |
|
3. |
Facilities |
The bank gives a passbook, cheque book, statement of account and pay-in-slip book to the customers. |
The bank gives a pas book, cheque book and pay-in-slip book to the customers. |
|
4. |
Who takes it |
It is suitable for traders, businessmen, firms or institutions. |
It is suitable for fixed income group, wage or salary earners. |
|
5.
|
Constraintson operation and withdrawals |
There are no restrictions on the operation of a current account as long as there is balance in the account. |
The customers have certain restrictions on withdrawals. |
|
6. |
Rate of interest |
Normally, interest is not given. |
Interest rate is low. |
|
7. |
Nature of Account |
It is of continuous nature. |
It is of continuous nature. |
|
8. |
Facilities |
Temporary overdraft facility is given |
No overdraft facility is given. |
